Construction Shows Growth Again

April's figures from the Chartered Institute of Purchasing & Supply (CIPS) for construction showed the strongest rate in growth since September 2007, offering renewed hope in a still fragile economy.

In summary, new orders rose, jobs were cut at a slower pace and input cost inflation was at its strongest for almost two years. The reading was posted at 58.2 from the previous month's 53.1. Any reading above 50 shows growth in the sector.


David Noble, CIPS said: "It's encouraging to see the construction sector show signs of recuperation for the second month running and suggests that the whole UK economic recovery has real substance. Though the industry is moving in the right direction, we mustn't be lulled into complacency as growth is coming from a very low base and operating conditions are still very difficult.

"While purchasing managers noted a growing appetite for new contracts - especially in the housing and commercial sub-sectors, civil engineering is still a sore spot with little activity. Looking forward during election week, it's a worry considering what impact post-election spending cuts and rising input-price inflation might have on the sustainability of the sector's recovery."

(CD/GK)